Mike Chambers, the Principal Product Manager for developer relations for the Flash Platform at Adobe, has posted a blog announcing that although Adobe Flash CS5 will release with the ability to publish to the iPhone platform, that they will not spend any further energy in future releases on this feature.
The core of the argument is that Adobe has proved that it can publish content with Flash that would work on the Apple products, but Apple is not interested in allowing developers to create flash (and some other types)content that would be run in these environments.
Apple has strict policies about what will be allowed to be published and what won't be allowed. This is absolutely there choice to deny Flash and other content that they seem unfit from their platform.
Flash developers and others interested in cross device deployments with a single runtime should look to other open platforms such as Android based devices, where you can publish contect using your tool of choice and someone won't stop you from doing so "just because".
I'm ready. No, really I am.